What is Flipping in Real Estate Terms

Most properties bought and sold on the real estate market are long-term propositions. Buyers simply are looking for a residence they can keep for at least a few years if not longer. This is certainly not the case with flippers.

Flipping a property means to buy it with the intent or reselling it in a short amount of time. The time span can range from one to six months, but never more than a year. In purchasing the property, the "flipper" has a defined plan as to how they are going to increase the value quickly and inexpensively. This increased value is then translated to a much higher sales price when the house is put back on the market. Once it is resold, the person has "flipped" the house.

There are a lot of strategies and techniques for flipping real estate. Strategies can involve finding owners in bad financial shape who will sell at a major discount or simply looking for property that can gain significant value by undergoing cosmetic improvements. Flipping properties isn't for everyone and takes a lot of work. For those that stick to it, however, flipping can be a very profitable venture.